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The government shutdown enters a new phase: mass layoffs

Workforce reduction notices went out to the Treasury Department, as other agencies were also hit. Past shutdowns have resulted in furloughs, not firings

ByJoseph Zeballos-Roig
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Russell Vought, director of the Office of Management and Budget (OMB), during a cabinet meeting at the White House in Washington, DC, US, on Tuesday, Aug. 26, 2025. (Aaron Schwartz/CNP/Bloomberg via Getty Images)


The White House began mass layoffs across federal agencies on Friday afternoon, signaling a new phase in the government shutdown as it stretches ever deeper into its second week.

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It began with a four-word social media post from Office of Management and Budget Director Russell Vought. "The RIFs have begun," he said, using a bureaucratic term for reductions in force.

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Workforce reduction notices went out to the Treasury Department, per an agency spokesperson. Other agencies were reportedly hit with layoffs, including the Departments of Commerce, Health and Human Services, Homeland Security, and Energy, among others. It's not immediately clear how many federal workers received pink slips.

Past government shutdowns have resulted in furloughs, not firings, per budget expert Bobby Kogan of the liberal-leaning Center for American Progress Action Fund.

The notices made good on President Donald Trump's earlier threats to embark on another large-scale reduction of the federal workforce, similar to the start of his second term. Vought had already ordered funding cuts for a handful of transportation projects in the Democratic-led states of New York and Illinois.

However, the president's remarkable escalation could stiffen Democrats' resolve and drag out the shutdown for the foreseeable future.

Democratic lawmakers are pressing for the renewal of tax credits that help many Americans afford their health insurance. Most Republicans are aligned in opposition, with the standoff having no end in sight. Trump has at times demonstrated an interest in negotiating on healthcare, but only after Democrats vote to restore federal funding.

Through the week, the president had publicly mused about firing federal employees, particularly those he viewed as Democrats opposed to his political agenda. “When you shut it down, you have to do layoffs,” Trump said Tuesday. “So we’d be laying off a lot of people that are going to be very affected, and they’re Democrats.”

The American Federation of Government Employees — one of the largest government worker unions — immediately sued the White House to prevent the firings.

“It is disgraceful that the Trump administration has used the government shutdown as an excuse to illegally fire thousands of workers who provide critical services to communities across the country,"AFGE National President Everett Kelley said in a statement.

This wave of federal firings might not be as set in stone as the White House claims. Formal reductions in workforce typically take 60 days to complete, according to federal guidelines. It's possible some government agencies call back their fired employees once the shutdown ends.